WEBVTT THE PROBLEM, IT'S THE SPENDING.>> WHEN WE SAY SPEND, THAT MEANSTRANSFER TO THE UNIVERSITY ANDWE'RE JUST MAKING SURE THATWE'RE BEING A PRUDENTFOUNDATION. REPORTER: THE U OF L FOUNDATIONVOTED UNANIMOUSLY TO CUT ITSANNUAL TRANSFER TO U OF L FROM $44.1 MILLION THIS YEAR TO30.4 MILLION NEXT YEAR.FOUNDATION CHAIR DIANE MEDLEYSAYS U OF L'S ENDOWMENT ISSHRINKING FROM TOO MUCHOVERSPENDING.>> WE'RE PROUD OF THE RESULTSTHAT HAVE BEEN GENERATED BY THEPORTFOLIO, BUT IT HASN'T BEENENOUGH TO KEEP UP WITH THESPENDING. REPORTER: U OF L'S FINANCIALADVISERS TOLD THE FOUNDATION THEENDOWMENT HAS SHRUNK FROM MORE THAN $600 MILLION FIVEYEARS AGO TO 577 MILLION AT THEEND OF 2016.>> MOSTLY OVERSPENDING WASACTUALLY MONEY SENT TO THEUNIVERSITY TO SUPPORT ITSMISSION.SO IT WAS DONE FOR THE RIGHTREASON, IT WAS JUST NOTNECESSARILY A PRUDENT THING TODO ON AN ONGOING BASIS. REPORTER: THE FOUNDATION ALSODECIDED TO END A CONTROVERSIALPROGRAM THAT GAVE FORMER U OF LPRESIDENT JAMES RAMSEY MILLIONSIN BONUSES.>> WE JUST FELT LIKE WE NEED TOSTART A CLEAN SLATE HERE ANDJUST DRAW A LINE IN THE SAND.ANYONE WHO'S IN IT AND HASVESTED WILL GET THEIR MONEY, BUTGOING FORWARD, WE THINK IT NEEDSTO BE RETHOUGHT. REPORTER: ALL PART OF ONGOINGCHANGES TO ADDRESS CONCERNSABOUT THE FOUNDATION.>> WE JUST WANT TO MAKE SURE THEPUBLIC KNOWS WE'RE GOING TO MAKEAS BEST DECISION AS WE CAN TOPROTECT THIS FOUNDATION FOR THELONG HAUL TO START GROWING ITAGAIN BECAUSE THERE'S A LOT OF